Fair Harvard

日期:2016/04/14

 For an eternity Harvard has paid its fund managers 100 times as much as the average professor. The overseers seem too foolish to understand that when you have funds already raised, the performance fee should be 1/20 of what it is. The managers are able to fool the professors by saying that if you went outside, the cost would be much higher, and we only get paid much if we beat the bogey. The regression fallacy seems unknown to the professors, i.e. that some will beat it by luck, and they will absorb the bad and pay for the good, and the whole fund raising apparatus which is Harvard's main asset does not take a cut from the manager's pay.